How large economic stimuli generate individual and aggregate responses is a central question in economics, but has not been studied experimentally. We provided one-time cash transfers of about USD 1000 to over 10,500 poor households across 653 randomized villages in rural Kenya. The implied scal shock was over 15 percent of local GDP. We find large impacts on consumption and assets for recipients. Importantly, we document large positive spillovers on non-recipient households and rms, and minimal price inflation. We estimate a local transfer multiplier of 2.4. We interpret welfare implications through the lens of a simple household optimization framework.
Every year low- and middle-income countries import goods worth more than $7 trillion, and in many states these shipments must first pass through the hands of corrupt customs officials.
Research suggests that partisanship and social media usage correlate with belief in COVID-19 misinformation, and that misinformation shapes citizens’ willingness to get vaccinated.
In response to the Covid-19 crisis, 186 countries implemented direct cash transfers to households, and 181 introduced in-kind programs that lowered the cost of utilities such as electricity, water, transport, and mobile money.
How can unconditional cash transfers (UCT) be leveraged to boost household incomes beyond addressing short-term food insecurity in a prolonged humanitarian crisis setting?